Yorkshire Building Society (YBS) has now launched what is thought to be the lowest rate currently on the market, with a two year discounted standard variable rate mortgage at just 0.98%. As one of the first sub-1 % rates now available, this is on offer for all buyers and borrowers looking to remortgage and comes with a £1,495 product fee, which is available up to 65% loan to value (LTV). The variable mortgage product currently tracks YBS’s standard variable rate of 4.74% with a discounted rate of 3.76%.
With an interest rate collar of 0.00%, this new, two-year rate allows the customer to benefit from reductions to the lender’s standard variable rate until their payable interest rate reaches the collar. It’s important to note that after the initial term, this will then revert to the lender’s original standard variable rate.
Borrowers also have the opportunity to redeem their mortgage at any time during the discounted period of this product, which will incur a 1% early repayment charge. This remains lower than any of the lender’s charges for fixed rates.
Elsewhere, TSB has now removed mortgage application fees from its entire range of products for residential and buy to let mortgages, which is set to save customers approximately £265. In addition to this, the lender has also introduced a new selection of fee-free three year fixed rate products.
The new selection of rates includes:
- 1.84% up to 60% LTV
- 1.99% at 60% to 75% LTV
- 2.14% at 75% to 80% LTV
- 2.29% at 80% to 85% LTV
- 2.89% at 85 to 90% LTV
- 3.89% at 90% to 95% LTV
The lender’s removal of the mortgage application fee alongside this new range of three year fixed products is excellent news for borrowers and homeowners alike in the current market, with the opportunity to benefit from a cheaper price and a longer-term fixed product – but without the often high additional charges and application fees that can come with them.